Exam 10: Securities Markets: Trading Financial Resources

It is fairly easy to acquire loans in Arzenia as the financial intermediaries of the country receive sufficient funds in the form of savings from its people and businesses. This enables them to turn the funds obtained into loans. Based on the information given in the scenario, these financial intermediaries are a form of _____.

Damien buys stocks worth $2800 in a cosmetic products manufacturing company. His investment turns out to be a sound decision as the prices of his stocks go up by $900. In this scenario, Damien earns a _____.

Passed during the early twenty-first century, the Sarbanes-Oxley Act included provisions to ensure that external auditors offered fair, unbiased opinions when they examined a company's financial statements.

Financial diversification is a strategy of investing in a wide variety of securities in order to reduce risk.

The Securities Act of 1933 created the Federal Reserve System to serve as the central bank in the United States.

Compare mutual funds to exchange traded funds.

Which of the following is a difference between common stockholders and preferred stockholders?

Elliot holds a bond in a health care company that matures after a period of ten years. Taken together with the interest on the principal amount, on maturity, Elliot will receive a sum of $55,000, which is the bond's _____.

In the context of the various strategies for investing in securities, the problem with market timing is that:

Markets that transfer funds from savers to borrowers are referred to as _____.

The banking panic of 1907 in the United States created pressure for Congress to find a way to stabilize the nation's banking system. The result was the:

Reese buys securities in a pharmaceutical company for $3300. After a period of eight months, when the prices of the securities go up in the market, she sells her securities for $3700. In this case, the difference of $400 in the prices of the securities is called:

Which of the following explains the preemptive right of common stockholders?

Helmert Federal, a financial institution, acquires its funds primarily from the deposits of its customers, and then uses these funds to make mortgage loans for individuals interested in purchasing real estate properties. Helmert Federal is a(n) _____.

Sapphinx Growth and Income, a mutual fund company, had a free hand in its operations before the year 2010. However, after an alteration in the government rules, the company faced a number of restrictions in selling its shares to investors. Which of the following acts is responsible for the alteration in the rules?

In the context of the various strategies for investing in securities, which of the following statements is true of market timers?

Futures Life Insurance is an insurance company in South Africa. The insurance company uses its large pool of financial capital, which it accumulates by collecting premiums from its policyholders, to purchase corporate stocks of different multinational companies. In this scenario, Futures Life Insurance is a(n) _____.

Flammox Growth Fund, a mutual fund, issues 200 shares in the market. However, because of a sharp demand from the investors, the fund issues 350 additional shares. In this scenario, the Flammox Growth Fund is structured as a(n) _____:

Garret wants to buy shares of an iron manufacturing company, but he does not want to pay a high price for them. He asks his securities broker to only buy shares that come within the price of $300 and $400. In this scenario, Garret places a _____ with his broker.

Kenneth is very particular about his investment decisions and likes to perform an extensive market research before making any major investment. He, however, does not have the time and expertise to conduct market research. To deal with this situation, he should hire a(n) _____.